Office 365 Azure AD Connect - Password Sync

We have a server 2008 R2 DC and are trying to sync the local passwords with the passwords of Office 365 accounts. I've installed Azure AD Connect and configured it. In Office 365 it shows the directory and passwords as having synced but all users Sync Type is listed as In Cloud and the passwords still haven't synced. I've successfully done this with a different company can not get it to work here.
Is there any way to get useful logging information from the Azure AD Connect software?